Romania’s Government issued a negative opinion on a draft law amendment drafted by Social Democrat (PSD) MP Mirela Furtuna, for guaranteeing the real value of the contributions paid to the mandatory private pension funds (Pillar II), Profit.ro reported.

The amendment drafted by the PSD MP envisages that the contributors to Pillar II pensions should be guaranteed that, at retirement, they would receive at least the cumulative value of their contributions indexed for the consumer price inflation. In essence, the amendment means that the managers of Pillar II pension funds should obtain positive real average yields for each contributor.

The Government claims that the amendment, if implemented, will generate additional costs for fund managers of over EUR 200 million, and their investment policies will become extremely conservative - with a negative impact on the returns obtained, which will bring long-term damage to the contributors.

editor@romania-insider.com

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